State Development Corporation VEB.RF provided its first guarantees in the amount of 20 billion rubles each in favor of Sberbank and Bank VTB.
In total, VEB.RF plans to provide guarantees for a total amount of up to 100 billion rubles in favor of the backbone banks of Russia and for SME Bank. The guarantees are provided as security for SMEs to repay loans at a zero rate received for the payment of wages.
“It is now crucial to provide timely support to small businesses. The program should cover entrepreneurs with a total number of employees of about 1.5 million people. We have all the possibilities to respond flexibly to the needs of the Russian economy and to solve the tasks that the government has set for us. In order to implement these decisions, it is necessary for all development organizations and commercial banks to work harmoniously. VEB.RF is currently implementing the necessary corporate solutions. We have developed and now operate financial instruments, including a guarantee program. This allows us to create new products that will be in demand in a crisis situation,” said Igor Shuvalov, Chairman of VEB.RF.
The decision to expand business access to concessional lending and the provision of interest-free loans for the payment of wages to SMEs was taken by the Russian Government.
